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T A B L E O F C O N T E N T S EXECUTIVE SUMMARY……………………………………………...……..3 SITUATION ANALYSIS……………………………………………..….4-27

The Market……….……………………………...…...…...………...…….4-7

Competitive Position…………………………………………....………8-15

The Consumer………………………………...………………….……15-18

Dealers/Distributors/Brokers……….……..……………..……………19-20

Advertising History………………………….……………...……..……20-24

Sales Promotion…………………………...……………………..……24-25 Challenges and Opportunities……..…………………………………………26-27

RECOMMENDED TEST MARKET………………..……..…………28-29

CAMPAIGN OBJECTIVES……………………………………….....……30

TRADE DISTRIBUTION PLAN…………………………..………………30 SALES FORECAST………………………………………….……………31

TARGET MARKET RECOMMENDATION…………...……………32-37 MEDIA PLAN…………………………………………………...………38-43

CREATIVE………………………………………………………………44-54 SALES PROMOTION…………………………………………………55-59

BUDGET……………………………………………………………...…60-61

BIBLIOGRAPHY……………………………………………………..…62-63

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E X E C U T I V E S U M M A R Y

The Spokane Designated Market Area is where we recommend launching a test marketing campaign for Brightside Morning Snacks. Our recommended target audience is females 21-39 with an income of $50,000 or more with a college education. These females are family-oriented with a modern and active lifestyle.

Consumers are snacking more than ever for a myriad of reason, which leads to higher participation in the snack and cereal bar category. In this category of cereal and snack bars, the top trends are health, product innovation, packaging, and snack culture. The research from Mintel and Simmons shows that the pricing of cereal bars and satisfying hunger are top reasons consumers tend to buy bars. As people’s lives become busier and individuals tend toward more chaotic lifestyles and schedules, they tend to buy more snack bars as meal replacements or in-between meal sustenance.

Several store managers revealed that shelf-placement of cereal bars depends on sales and/or brand participation with store marketing plans. Managers as well as Mintel Research also revealed that bars tend to sell more when schools are in session, especially the beginning and end months of the school year. During these busy times, sales promotions are at their peak to capitalize on this trend. While advertising we chose to use a flighting schedule, using ads during August and then again in June, with other placements scattered between.

The advertising goal is to reach 400 gross rating points in the first 90 days of the campaign. Our creative campaign will consist of radio, TV and outdoor advertisements.

Our creative statement is, “Be Bold. Be Brave. Be Bright.” Our advertisements will feature families, children, and mothers since research shows that most of our target are women with children.

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S I T U A T I O N A N A L Y S I S T h e M a r k e t

Definition The convenient packaging of bars is greatly valued in today’s on-the-go society. Within the bar marketplace are cereal, snack, breakfast, and granola bars. The following report details the market for Pepperidge Farm Brightside Morning Snacks, offered in cranberry, cinnamon brown sugar and blueberry flavors. Relevant Market (SIC) Codes The Standard Industrial Classification (SIC) code for Pepperidge Farm’s new Brightside Morning Snacks bar is 2065. The first two numbers of the SIC code, 20, categorize breakfast bars as “food and kindred products”. The last two numbers, 65, indicate that breakfast bars fall under the “candy and other confectionary products” category. Brightside Morning Snacks’ NAICS code is 311340. Cereal bars similar to Brightside bars are classified as, “nonchocolate confectionary manufacturing” products. Market Size and Growth Trends Growth within the bar market is slow, with sales decreasing slightly in the breakfast, cereal, and snack bar category and increasing in the granola bar category. According to Mintel research, cereal and snack bar sales saw a general 7% increase of from 2007 to 2012, reaching $3.7 billion. However, when adjusted for inflation, there was a 3% loss (Mintel, Cereal Bars and Snack Bars. “Market Size and Forecast.” US, 2013). Despite suffering sales, societal trends promise growth within the category. The category’s overall convenience, health attributes, America’s growing snack culture, and innovative packaging opportunities create an atmosphere ideal for sales growth amongst products such as Brightside Morning Snacks.

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Market Forecast At a 50% confidence interval, Mintel predicts that the cereal bars and snack bars category will grow by 13% between 2012 and 2017. The best-case scenario for this category falls within the 95% confidence interval, which

estimates a 25% increase in sales to $4.6 billion. This category’s worst-case scenario, also within the 95% confidence interval, predicts a 1.8% increase in 2017, bringing sales to $3.8 billion (Mintel, Cereal Bars and Snack Bars. “Executive Summary.”

US, 2013). Market Make-Up There is a large gap within the market between granola bar sales and cereal bar sales. An increased market lead of granola bars over cereal bars between 2010-2012 led to granola bars having the greatest market share, making up 58.9% of the 2012 market (Mintel, Cereal Bars and Snack Bars. “Executive Summary.” US, 2013). Products within this category are sold in boxes containing individual packages. Mintel research indicates that convenient and portable packaging is important to 54% of respondents due to more frequent snacking and a wider variety of snacking occasions and locations (Mintel, Food Packaging and Trends. “Innovations and Innovators.” US, 2014).

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Distribution Mintel detailed that 79% of the total US population consume cereal and snack bars (Mintel, Cereal and Snack Bars. “Infographic Overview.” US, 2013). Regional category distribution data, gathered from Simmons Market Research Bureau (SMRB) software, indicates that the geographic region of primary cereal bar consumption is the Midwest region with 19.7% of the region’s population consuming cereal bars most often as a nutritional snack (Index=117). Additional regions include South (15.9%), West (16.5%), and Northeast (15.8%) (SMRB, 2009).

Significant Trends Health Weight has continued to be an issue throughout America. As people become more health conscious in order to combat this problem, an interest in healthy snacking has also increased. Mintel reported that, out of 1,995 respondents age 18+, 65% of ‘very important’ and ‘somewhat important’ responses were “healthy”. Health is even more relevant when it comes to meal replacement snacks such as Brightside Morning Snacks. When consumers choose to substitute a typical breakfast with a morning snack, they will more likely opt for a healthy snack (Mintel, Healthy Snacking. “Executive Summary.” US, 2012). Product Innovation Product and brand differentiation within the market has begun to diminish as the amount of similar products with parallel attributes increases (Mintel, Snack and Nutrition Bars. “Issues and Insights.” US, 2014). Sales growth will occur as a result of product innovation by focusing on promoting both fundamental and applied benefits, ranging from “energizing” to “money-saving”. Promotional goals should focus on boosting claims in order to divert consumer attention “away from competing brands, private label offerings, and bar and snack offerings in competing categories” (Mintel, Cereal Bars and Snack Bars. “Executive Summary.” US, 2013). In doing so, the unclear line between market segments will begin to redefine itself.

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Snack Culture With 94% of adults snacking once per day and 50% snacking 2-3 times per day, there is no doubt that snacking will continue to be an important activity for food and drink companies to cater to. An indication of increased snacking between 2014 and 2015 among millennials suggests that snack culture will not only continue, but that it will grow, as well (Mintel, Snacking Motivations and Attitudes. “Executive Summary.” US, 2015). The possibility of a decrease in snacking would primarily come from an increased awareness of the weight-related health issues in America. However, Mintel’s report on Experian Simmons’ data observing American’s snacking behavior indicates that, despite amplified media coverage about the country’s obesity problem, there was little change in behavior between 2007-2011 (Mintel, Healthy Snacking. “Executive Summary.” US, 2012). Packaging The A.D.D.-stricken, on-the-go society that is America today has a strong impact on people’s eating habits. Whether or not a snack is packaged conveniently greatly influences the sales success of that product. There is room for growth with regard to this attribute as illustrated by the 33% of 1,888 respondents who indicated that there are not enough snacks offered in convenient, individual, and re-sealable packaging. The functional snackers that are millennials stresses the importance of convenience as maintaining focus throughout the day is a top priority when it comes to choice of snack (Mintel, Snacking Motivations and Attitudes. “Executive Summary.” US, 2015). Further insight into snacking behavior indicates that a combined 49% of 1,979 respondents typically eat snacks either while driving or while on-the-go (Mintel, Healthy Snacking. “Executive Summary.” US, 2012). Additionally, convenient packaging saves consumers’ time, which 34% of 1,368 respondents indicated as a reason for eating cereal and snack bars (Mintel, Cereal Bars and Snack Bars. “Executive Summary.” US, 2013).

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C o m p e t i t i v e P o s i t i o n

Product Quality Mintel research shows that cereal/snack bars are perceived in a generally positive light by consumers. In their research, Mintel surveyed 1,368 people age 18 and above across many age ranges. In their research they found multiple key findings for the current state of cereal/snack bars (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward Cereal/Snack Bars.” US, 2013). One finding indicates that consumers like the taste of cereal/snack bars. This was consistent amongst every demographic. Overall, 86% of those participating in the survey agreed with the statement “I like the taste of cereal/snack bars”. When looking at gender, percentage of those that like the taste was nearly the same, with 87% of males and 86% of females liking the taste. Again when examining the question based on different age groups the results hold. At least 83% of each age range said they liked the taste. Adults between the ages of 35 and 54 liked the taste the most (89% agreed with the statement), while Senior Citizens (age 65 and older) liked the taste the least (83% agreed with the statement (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward Cereal/Snack Bars.” US, 2013). Another finding indicates that consumers generally consider cereal and snack bars to be healthy. Based on all responses from participants of the survey, 74% agreed with the statement “Cereal and snack bars are a healthy snack”. There wasn’t a difference of opinions between genders on the stance of cereal/snack bars’ health status, as both at least 74% of both demographics agreed with the statement. However, when looking at the participants’ thoughts on cereal/snack bars’ health status across different age groups, some discrepancy appears. All age groups below the age of 55 had higher percentages of agreeing with the statement than the overall average of 74%. Despite the younger age groups’ majority opinion that cereal/snack bars are healthy, participants age 55 and older were in less agreement. Only 65% of both the age groups of 55-64 and 65 and older agreed that the cereal/snack bars are a healthy snack.

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Highlighting the health benefits of Brightside Mornings Snacks could help sales with an older audience (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward Cereal/Snack Bars.” US, 2013). A finding from the research that was less positive was cereal/snack bars effect on hunger. One question in the survey asked the participants to agree or disagree with the statement “When I eat them, I feel satisfied (full) for hours” (them referencing the cereal/snack bars). The response showed the participants were split on their agreement with the statement. 52% of the participants agreed with the statement. Across most age groups, more participants agreed with the statement than did not. However, the majority of participants in the age groups of 18-24 and 65 and older disagreed with the statement (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward Cereal/Snack Bars.” US, 2013).

Pricing, Sizes Available and Product Features According to the research conducted by Mintel, consumers think that the pricing for cereal/snack bars is fair. Mintel asked participants in their survey to agree or disagree with the statement “Cereal and snack bars are an inexpensive way to satisfy my hunger.” Overall, 69% of participants agreed with the statement. Those between the ages of 18 to 24 agreed with the statement at a much higher rate. 79% of participants in that age group agreed with the statement. It is important to make note of this discrepancy and emphasize that Brightside Morning Snacks are an inexpensive way to satisfy hunger, especially towards the young adult audience (Mintel, Cereal Bars and Snack Bars. “Attitudes Toward Cereal/SnackBars.” US, 2013).

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Nutritional Competitive Analysis

*Brightside has more calories and more fat than other bars listed. *Of the bars compared, a single serving of Brightside is the largest at 45g.

*Brightside bars are on the high end of the sugar scale. *Of the bars compared, Brightside has more protein per serving at 5g.

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Packaging Competitive Analysis

Product Bar Count Package

Size Retail Price

Price Per Ounce

Flavor Varieties

Kellogg

Nutri-Grain Bars 8 10.4 oz $2.68 $0.26 7

Special K Chewy 6 5.28 oz $2.78 $0.53 4

Rice Krispies Treat 8 6.2 oz $2.00 $0.32 1

Special K Fruit Crisps 10 (2 per pouch) 4.4 oz $2.78 $0.63 2

Special K Pastry Crisps 10 (2 per pouch) 4.4 oz $2.78 $0.63 3

General Mills Inc.

Blueberry Muffin 5 8 oz $4.71 $0.59

Chocolate Chip Cookie Dough 5 8 oz $5.28 $0.66

Apple Pie 5 8 oz $5.68 $0.71

Chocolate Chip Cherry Torte 5 8 oz $4.58 $0.57

Lucky Charms Treats 6 5.1 oz $2.50 $0.49 1

Golden Graham Treats 6 6.36 oz $2.50 $0.39 1 PepsiCo Inc. Quaker Oatmeal To Go 6 12.6 oz $2.73 $0.22 3

BRIGHTSIDE 5 8 oz $3.99 $0.50 3

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Shelf Placement By comparing shelf placement among stores, it is easy to see who our major competitors are and where they stand. We compared Pullman Dissmore’s IGA to Pullman Walmart. Key players by space allotment in both stores:

1. Nature Valley 2. Fiber One 3. Quaker 4. Nutri-Grain 5. Special K 6. Kashi 7. Store Brands

Other brands mixed in the shelf space at Walmart included Kind, Life Choice, Larabars, and Nature’s Bakery fig bars; Dissmore’s included Jif, Annie’s and Bakery on Main.

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Market Share In the cereal/snack bar industry, Kellogg’s is the clear leader in terms of sales. Of the over $1.1-billion industry, Kellogg’s makes up 61% of the market share with sales of $733,100,000.00. These sales are made up of many different products such as Nutri-Grain Bars, Special K Bars, Rice Krispy Treats, and more. The three listed are the leading products from Kellogg’s, together making up 77% of Kellogg’s cereal/snack bar sales (Mintel, Cereal Bars and Snack Bars. “Brand Share—Breakfast/Cereal/Snack Bars.” US, 2013).

Kellogg  61%  General  Mills  

Inc.  10%  

Kra5  Foods  Inc.  3%  

PepsiCo  Inc.  3%  

Other  15%  

Private  Label  8%  

CEREAL/SNACK  BAR  MARKET  SHARE  

Nutri  Grain  Bars  29%  

Special  K  Bar  24%  

Rice  Krispies  Treats  24%  

Special  K  Fruit  Crisps  12%  

Special  K  Pastry  Crisps  5%  

Other  6%  

KELLOGG  MARKET  SHARE  

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Trends A growing trend in the United States is that of snacking. People are constantly on the move, which often gets in the way with eating. According to Mintel’s research on the Reasons for Eating Cereal/Snack Bars, 75% of those that eat cereal/snack bars eat them as a snack in between meals (Mintel, Cereal Bars and Snack Bars. “Reasons for Eating Cereal/Snack Bars.” US, 2013). Awareness of this growing trend is important when positioning the product. Additionally, according to Innova Market Insights, a top food and beverage trend of 2015 is the decline of formal mealtimes (Boothroyd, “Top ten food trends for 2015, Innova Market Insights”). This is another indicator that cereal/snack bars will see an increase in sales. Prepared Foods, a trade magazine devoted to processed and packaged foods and beverages predicts that the market for snack bars will move close to $8-billion by 2019 (“U.S. Nutritional and Cereal Bar Trends”).

T h e C o n s u m e r

U.S. Consumers The U.S. as a whole has over 115.2 million households with 79% of them consuming cereal bars or snack bars (Mintel, Cereal Bars and Snack Bars, 2013). That means about 91,008,000 individual households in the U.S. are consumers of the category. Households Around 66% of U.S. households are family households and 34% are nonfamily households. The average household size is 2.6 people and 33% of households have one or more people under 18 years old (Census.gov). Between 2004 and 2014, the number of households using cereal bars increased 50% and the number consuming specifically chewy granola increased 33%. Altogether, around 44% of adults used cereal or granola bars in 2014. So, using U.S. population estimates, there were approximately 108.028,770 individual adult consumers of the category that year. Those most likely to be consumers in the category are women, young consumers,

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consumers from larger households, and households with children (Mintel, Cereal Bars and Snack Bars US, 2013). Consumption and age Personal consumption correlates to age with younger individuals (18-24) being more likely to eat cereal/snack bars. As age goes up, consumption goes down for this category.

Young Consumers An important group is those even younger than 18, with some 93% of parents with children 12-17 indicating that someone in their household consumes in the category. Consumer Income Households with higher incomes are more likely to buy snack and nutrition bars. A 2014 Mintel report shows that households earning $100,000 to $149,900 consume the most bars. However, the tie between consumption of

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cereal and snack bars and income is not very strong. Even in challenging financial times, consumers still see the category as affordable. Households with Children Households with children are more likely to consume in the category as parents bring snacks into the home that aid in active lifestyles. In a Mintel study, 89% of respondents with children in the house said someone in the home consumes some type of bar while a lesser 72% of households without kids say the same. The presence of children drives consumption in the category, as well as attitudes about the products (Mintel, Cereal Bars and Snack Bars US, March 2013). Respondents with children in the Mintel study were more likely to be interested in variety of flavor and added health benefits to suit their own needs as well as their children’s. Non-Consumer Attitudes A Mintel study showed that only 27% of people who do not eat cereal or snack bars said there was any concrete reason they don’t participate in the category (Mintel, Cereal Bars and Snack Bars US, 2013). Therefore, this may indicate that most who don’t eat from the category just don’t really think about it and could therefore be swayed to become users through stronger promotion and advertising of the products. Those who did indicate a specific reason for nonparticipation showed trends within gender groups. Men are more likely to say that price is a reason for not consuming bars, while women say health concerns lead them to the same conclusion. Snacking Consumers Consumers are snacking more than ever and are looking for products to satisfy during the in-between meal times (Mintel, Cereal Bars and Snack Bars US, 2013). An interview that our agency conducted with a 28-year-old mother of three, said she buys bars to give her children in the car so that she does not have to spend money on fast food while out and about in-between meals she makes at home.

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Minority Consumers Hispanics are more likely to consume products in the category than non-Hispanics. Simmons data shows that respondents of Hispanic/Latino origin index at 142 for eating granola most often as a snack and 126 for cereal bars.

Asians are more likely to consume the category as a meal replacement than as a snack. They are interested in the category’s role as a time and money saver and energy booster. Black consumers are significantly more likely than average to be interested in nutritional benefits of snack and cereal bars. These consumers look for bars with fiber, protein, vitamins, and nutrients (Mintel, Cereal and Snack Bars US, March 2013).

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D e a l e r s / D i s t r i b u t o r s / B r o k e r s

Top Sellers Upon conducting interviews with store managers, we discovered the top three selling bars are Quaker Chewy, Fiber One, and Nature Valley. According to a Dissmore’s manager, Fiber One bars sell between 15-18 cases a week and Nature Valley sells 8-10 cases a week. Back to School Sales As we continued to interview the managers, each of them said the most sales they have in the category are at the beginning of school years and at the end of school year, especially in Pullman. Dissmore’s manager did state they tend to do more promotions at the beginning of the school year when students come back to school; the Spokane markets agreed. Product Positioning on the Shelf by Store We discovered from the Rosauers manager that if national brands comply with the Rosauers marketing plan, they will receive better shelf placement. Dissmore’s, however, shelves in correlation to product sales. Safeway and Wal-Mart stores are corporately controlled so that every store has the same shelf-positioning and promotions at all times.

Promotional Practices The stores we contacted said they utilize coupons most frequently. For example, Fiber One is the main driver for sorority moms because they receive 10% off coupons. Dissmore’s makes coupons available in-store for their customers. Other coupons go out to the community on a weekly basis. Nature Valley, specifically, sends coupons out every third week to locals. Promotional practices are very effective, according to the store manager at Wal-Mart. Some of the main promotions he noted that are currently going on are:

• Nature Valley for $3.42 (a savings of $0.36) • Fiber One for $3.59 (a savings of $0.40)

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• Other notable brands like Special K and Nutri-Grain were not running any promotions at the time of this report.

Safeway has promotional activities that vary week-to-week. The store also has their club card program, “Just for U”, where consumers can go online and load coupons for promotional goods.

The main trend that appears most prominent overall for the product category, is the school year and timed promotions. Students or parents of students will be more likely to purchase before and during the school year. Another trend that is used is coupons or deal variations. Some stores will change their promotional practices on a week-to-week basis or send out coupons on scheduled plans, as well as brands. Most will use DSD (direct store delivery) for their products. Stores with club cards, like Safeway’s “Just for U” program, engage with consumers online to download coupons for more in-store savings. Placement of brands and goods on shelves for smaller stores, like Dissmores, is determined by price whereas other larger stores, like Wal-Mart and Safeway, will only put products where corporate instructs to place them.

 

A d v e r t i s i n g H i s t o r y

Advertising Expenditures The majority of the advertisements are being placed in magazines, network television, spot television, syndicated television, and cable television. Most goes into Cable Television, with a total of over $22 million spent in 2013. This tells us that, with a smaller advertising budget like we have, it may not be entirely feasible to advertise in Cable Television. Looking at other mediums to advertise in, the least used here is the category of Spot Television. This may be a good opportunity if we want to advertise directly to those in the Spokane DMA. When looking at the examples of competitor advertisements, print advertising seems to be a popular choice. This may be because, with print

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advertisements, the public has the opportunity to see the message more than one time. *Numbers in thousands [000] of dollars

Advertising Copy Analysis Kellogg’s Nutri-Grain Bars

Medium Magazine           Network  TV Spot  TV Syndication Cable  TV     Total

Kelloggs  Nutri-­‐grain  Bar $2,100.6           $0.0   $0.0   $0.0   $0.0       $2,100.6  Nature  Valley  Granola  Bar $0.0           $1,518.5   $9,010.3   $1,566.4   $10,851.5       $22,946.8  Quaker  Oats  Granola  Bar $50.1           $1,800.7   $262.2   $2,664.6   $3,643.9       $8,421.5  Kelloggs  Special  K  Bar $0.0           $1,210.5   $28.1   $1,044.0   $1,857.3       $4,139.8  Kelloggs  Nutri-­‐grain  Fruit  Crunch  Bar $4,861.6           $5,009.8   $57.2   $3,051.2   $5,916.6       $18,896.4    

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This box of Nutri-Grain bars details the healthy benefits that consumers gain from the purchase and consumption of the product. The focus on the box, “Now! MORE of the WHOLE GRAINS Your Body Needs,” tells consumers that Kellogg’s introduced a new feature to the bar that is a necessity for living a healthy life. Additionally, the box says “MADE WITH REAL FRUIT.” This infers that consumers of the product are interested in eating a cereal bar that contains natural ingredients.

From this print advertisement, Kellogg’s is showing that the typical breakfast food goes straight to your hips and rear. The woman herself is not overweight, but, after eating two cinnamon rolls, she can be seen as having a large behind. The woman that ate the two breakfast croissants appears to have love handles. This message attempted to show that choosing an unhealthy breakfast option will lead to adverse effects on the body.

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The copy in these advertisements reads, “Respect yourself in the morning”. This leads consumers to believe that they are doing themselves an injustice by eating these high-fat, high-calorie breakfast options. It infers that by eating a Kellogg’s Nutri-Grain bar, consumers are more likely to have higher self-respect and feel better about themselves by avoiding unhealthy breakfast cereal bars. One other thing to note about these two advertisements is that, since the model appears to be 20 to 30 years old, Kellogg’s is likely targeting females in the same age-range.

General Mills

TV advertisement – 2002 Honey Nut Cheerios Milk n' Cereal BThe main focus of this General Mills Milk and Cereal Bar television advertisement is on how readily available and convenient it is to consume their product. While a younger brother has time to sit down and enjoy the same general mills cereal in bowl form, the older brother is on-the-run and is unable to sit down for breakfast. He stresses the convenience that he has for consuming his cereal in bar form. The voice-over tells about how the bar is convenient as well, and that it has all of the same nutritional value as a bowl of cereal.

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From this commercial, I can tell that they are advertising to youth, children under the age of 18. They are focusing on kids that are busy, but still want to enjoy the taste of cereal. The advertisement states that the bars have similar nutritional value to a regular bowl of cereal, which I see as a statement to the kids’ parents, as they will likely be the ones to purchase the product.

S a l e s P r o m o t i o n

Sales promotions allow products to be cheaper and more appealing to customers. There are in store promotions as well as promotions online. After talking to managers at three major grocery stores we quickly understood just how important promotions are. Every manager agreed promotions seem to be most effective in the fall. We also noticed how much control corporate offices have over stores like Wal-Mart and Safeway when it comes to offering promotions and discount prices. After looking at the promotions going on for breakfast bars and breakfast snacks it is apparent the promotions as well as the benefits are strikingly similar. It is strongly encouraged that Pepperidge Farms have promotions that not only stand out and catch the attention of the consumer but also change the consumer’s buying habits. Fiber One Bars Fiber One has a promotion on their website called the Fiber One Challenge. This promotion challenges their existing consumers as well as new consumers to try Fiber One Cereal for a week and see if you personally feel better when the week is over. This challenge allows Fiber One to share with their website visitors why they will feel better by eating their product and attempt to help people stay on track with their healthy diets. Fiber One then allows you to tell your story and how Fiber One products have impacted your life. Social media is also used in Fiber One’s promotion plan. Facebook, Twitter, Pinterest, and Instagram are all used to communicate promotions to their audience. Fiber One bars were on sale for $2.48 with a Safeway Club Card and $3.59 at Dissmores, allowing the consumer to save 40 cents.

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Special K Bars Promotions for Special K are communicated through their own social media accounts such as Facebook and Twitter. Special K currently has a competition on their website where specially marked boxes of Special K bars have a coupon for a free 60-day personalized fitness program with Daily Burn. If won, the consumer gets to have their own personal coach and gets to choose the work out that best fits their needs. This promotion ends on 09/30/16. Another promotion they have online is to be able to win up to $100 by receiving a game piece in specially marked packages of Kellogg’s cereal, including Special K. In store promotions include Special K Bars being sold for 2 for $6 with a Safeway Club Card.

Nature Valley Bars Nature Valley bar coupons go out every 3rd week distributed by Dissmores. Promotions in store included discounts such as Nature valley on sale for $3.42 saving you 36 cents. This promotional discount expires on October 2nd. Website promotions for Nature Valley included printable coupons to save 50 cents. They also encouraged visitors to follow Nature Valley on Twitter and Facebook for regular updates on coupons. Nature Valley’s club price was $2.48 instead of the original price of $3.49. At Dissmore’s the Nature Valley promotion allowed consumers to save 36 cents.

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C h a l l e n g e s a n d O p p o r t u n i t i e s

A possible challenge that we may face when advertising is the possibility of being overshadowed by competition. Many other companies have significant advertising budgets and have the ability to purchase many advertising spots in multiple forms of media. With our smaller advertising budget, we may struggle to find footing in a medium that is consumed by our target audience and is not cluttered with competition. Additionally, there are many other competitors in the same market that we are entering. This may prove to be a challenge when we are trying to find footing with unique advertisements, as differentiation between products may not be easily noticed by the target audience. When thinking of the creative copy, it will be important to stress or emphasize the unique characteristics of our product in order to better facilitate the recognition of why Brightside breakfast bars are the best option for the target audience to choose. An opportunity that we have with the Brightside breakfast bars is that there are some mediums that are not utilized at all by competition. This means that we have the chance to capitalize on these less-used mediums to reach our target audience in less cluttered place. Being able to be the only breakfast bar advertisement in newspapers and radio could be something to take note of. This is, however, reliant on the percentage of those in the target audience that consume this form of media. It would not be efficient of us to advertise in newspapers and radio if the target audience doesn’t tune-in to these mediums frequently. Further Challenges and Opportunities to note:

1. PROBLEM: In a Mintel report from 2013, 32% of people say they do not consumer snack or cereal bars. OPPORTUNITY: Most who do not participate in the category indicate no real deterrent (Only 27% of nonparticipants indicated a specific reason for not using) and therefore there is opportunity to grow an even larger customer base.

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2. OPPORTUNITY: Consumers are snacking more than ever.

CONCLUSION: nurture this trend—promote product as a snack option for the hungry consumer.

3. PROBLEM: Mintel reports that people may be challenged to find uses for

the cereal/snack bar category CONCLUSION: Show consumers in our advertisements specific uses for the “in-between times.”

4. OPPORTUNITY: 86% of consumers of the category like the taste of the

products and three quarters consider them a healthy snack (MINTEL). CONCLUSION: Marketing messages should prioritize discussion of taste and product positioning should prioritize health factor.

5. OPPORTUNITY: A strength in the category is that only a third of consumers view products as being too processed (MINTEL). CONCLUSION: We may increase consumption among this group through promoting wholeness and health.

6. PROBLEM: More than half of consumers think that store brands are just

as good as name brands CONCLUSION: Fill consumers with confidence that they don’t need to trade down to store brands to save money; promote brand as affordable.

7. OPPORTUNITY: Hispanics are more likely than non-Hispanics to

consume products in the category. The Hispanic population is rapidly expanding in the U.S. They are more likely to consume granola bars especially (MINTEL) (U.S. Census Bureau). CONCLUSION: Make Hispanics a niche target since there are signs for potential future growth. When advertising to these consumers, focus on health of the product. Hispanics are significantly more likely to eat these products for weight loss, weight maintenance, metabolism, and blood sugar (MINTEL).

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R E C O M M E N D E D T E S T M A R K E T S p o k a n e , W A We  recommend  the  Spokane  Designated  Market  Area  (DMA)  for  the  Brightside  test  market  campaign.  This  DMA  is  among  the  top  25  of  “America’s  Best  Test  Markets,”  according  to  top  research  firms.      For  our  campaign,  it  is  important  that  we  have  a  test  market  that  reflects  the  nation  in  age  levels,  income,  and  retail  sales  buying  habits.  Spokane  DMA  meets  all  three  criteria:      

ü Spokane  age  groups  in  our  target  recommendation  (21-­‐39)  are  close  to  the  national  Index:    

Age                                      Count                                          %  Comp                                                Index  Age  21  &  Over   824,445   72.32    100

 Age  21-­‐24   71,489   6.27   112  Age  24-­‐34   140,940   12.36   94  Age  35-­‐44   127,833   11.21   88  

(SRDS  –  “Market  Profiles:  Demographic  Overview”)    

   

ü Average  Spokane  Household  income  is  similar  to  U.S.  income:    

Spokane  DMA  Est.  Avg.  Household  Income                  National  Avg.  Household  Income  $58,914   $51,939  

(SRDS)(U.S.  Census  Bureau)      

ü Spokane  is  on  the  Top  100  list  for  total  U.S.  Retail  Sales:    

Area            ($000)                        Rank  Spokane,  WA   $6,837,372   98  

(Survey  of  Buying  Power  and  Media  Markets)  

Size and Attributes of the Spokane DMA

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S p o k a n e D M A C h a r a c t e r i s t i c s The 2014 estimate for the Spokane Designated Market Area is 1,139,926 (SRDS). The population in this market has been trending upwards since at least 2000 and is projected to reach 1,181,283 by 2019. There are approximately 452,933 households in this DMA. Most of them (293,075) are family households. Almost 50% of households are married-couples with no children. The second largest group are married couples with their own kids (almost 30%). Nearly 10% have a female householder with children (SRDS).

Most households have 2 people in this area with 36.44% falling into the category. This market is 12% more likely than the national average to have 2 people in a household at an index of 112. Next up is 1-person households with 28.05% of this area having just 1 person in the residence. The third most prominent are 3-person households, which comprise about 14.61% of all households in the DMA. The percentages go down from here as household size increases (SRDS). Almost 90% of residents are white, but the area also has a very high index (234) of American Indian and Alaska Natives. This group only makes up about 2.3% of the area, but it is 134% above the nationwide average. The DMA is below nationwide average on the number of black or African Americans, Asians, Hispanic and Latinos, Puerto Ricans, and Cubans. The majority of people 16-years-old and above are White Collar workers in this area, almost 60% of them in fact. About half of the remaining 40% are Blue Collar workers and the other half are Service and Farm workers.

Most workers (185,208) in this DMA travel less than 15 minutes to work and 170,735 travel no more than 29 minutes. The 2014 estimated average travel time to work here is 22.41 minutes.

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C A M P A I G N O B J E C T I V E S

o Introduce a new product into the product category in the form of Pepperidge Farms Brightside Morning Snack bars on August 1, 2016.

o Target women, 21-39 years old in the Spokane DMA. o Achieve 400 gross rating points (GRPs) in the first 13 weeks o Maintain 31 gross rating points (GRPs) per week o Achieve at least a 50% All Commodity Value (ACV) across chains and

independents o Do not exceed budget of $91,221.94. o Present Brightside Morning Snacks as a seamless addition or

replacement within target’s diet. o Purchases encourages by couponing, sampling and spots placed across

TV, radio, and other outdoor or social media.

T R A D E D I S T R I B U T I O N P L A N

Within the Spokane DMA we plan to distribute to Albertsons, Safeway, Rosauers, Wal-Mart, Fred Meyer, Yokes and Winco, making up 54% ACV for chains and 45.8% ACV for independents.

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S A L E S F O R E C A S T

We  determined  the  projected  sales  for  the  test  market  by  factoring  in  the  total  number  of  stores  involved  in  the  test  market,  the  wholesale  cost  per  case  to  the  retailers,  the  average  weekly  case  movement  among  all  the  stores,  and  the  length  of  the  test  market  campaign.    (71  stores)  x  ($20.59)  x  (2)  x  (52  weeks)  =  $152,036.56  projected  sales  forecast    From  this  number  we  calculate  the  projected  wholesale  sales  by  multiplying  our  projected  sales  by  .542  for  our  54.3%  ACV  in  chain  stores  and  by  .458  for  our  45.8%  ACV  in  independent  stores.    $152,036.56  x  .542  =  $82,403.81  Projected  Whole  Sales  in  chain  stores  $152,036.56  x  .458  =  $69,632.74  Projected  Whole  Sales  in  independent  stores    We  then  calculate  the  cost  of  placing  the  product  in  all  71  stores  across  the  DMA.  Since  we  are  launching  a  new  product  with  3  flavors,  each  product  will  cost  $170  to  place  for  13  weeks.    71  stores  x  $170  slotting  fees  x  3  flavors  =  $36,210  Slotting  Fees    We  allocated  roughly  90%  of  our  remaining  total  budget  to  our  media  costs  on  radio,  television  and  outdoor  advertising.      $55,011.44  x  .9  (90%)  =  $49,750.00  for  media  costs    We  left  ourselves  a  sizable  amount  in  order  to  advertise  our  product  using  radio,  TV  and  outdoor  mediums  that  are  appropriate  for  our  target.  The  remaining  budget  was  used  for  an  in-­‐store  sampling  session  in  26  stores  on  the  same  day.  This  will  cost  an  estimated  $4,838.22.    

Remaining  Budget

   

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T A R G E T M A R K E T R E C O M M E N D A T I O N

Target audience was identified based on extensive consumer and market research utilizing secondary research. Data collected from the situational analysis, Mintel, Simmons and Lifestyle Analyst was used to select the target audience. Consumer behavior related o the product category is cross-referenced with the following demographics: gender, age, race, marital status, family size, income and education level. The following consumer behaviors such as consumption of cereal bars, frequency of consumption with regards to brand and psychographics were evaluated.

Primary Target Audience Age 21-39 Gender Female Income 50,000+ Education Level

College+

Other Family oriented; Active/Semi-Active Lifestyle; “Modern” Moms; Educated; Open to New Thing in Diet & Life; “Snackers”

The first series of tables (cereal consumption with simple demographic information) supports the idea of the recommended target audience, who consume cereal bars the most. The primary target group consists of females, 21-39, with a college education. They are family oriented, health conscience and live active-semi active lifestyles. These women are in careers that earn them an average income of $50,000 to $99,999. Although we have one primary target market, we also identified married or never married women with children as a main focus for the product. When observing the data collected, it is observed that both married women and head of the household women both have high vertical percentages and indexes for consumption behavior for the cereal bar product.

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Gender Total (000) Horizontal % Vertical % Index Male 6,563 13.8% 34.0% 82 Female 12,754 19.1% 66.0% 113 Figure 1: Shows that females are higher consumers of cereal bars most often as they are over indexing by 13%, in comparison to males, under indexing by 12%.

Females Aged

Total (000) Horizontal % Vertical % Index

18 118 16.5 .61 97 19 82 24 .42 142 20 103 24.6 .53 145 21 77 13.9 .40 83 22-24 350 19.9 1.81 118 25-29 1,656 29.9 8.57 177 30-34 1,837 23.9 9.51 141 35-39 985 18.1 5.10 107 40-44 1,250 21.6 6.47 128 45-49 1,408 25.8 7.29 153 21-39 4,906 18.4% 100% 138 Figure 2: Shows that the ages 25-34 within our target are those that are most likely to consume cereal bars most often. Overall, our 21-39 target are over indexing by 38%.

Highest Education: Females Aged 21-39 Education Total (000) Horizontal % Vertical % Index High School with Degree

4,957 29.1% 23.6% 158

Graduate School with Degree

2,442 21.2% 11.6% 116

Graduated College or more

8,216 25.7% 39.1% 140

Figure 3: Indicates that our target is educated at a high level. Will have their high school diploma going on to college and more and even some with graduate school degrees.

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Race: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often: Cereal Bars Race Total (000) Horizontal % Vertical % Index White 14,809 16.5% 76.7% 98 Black/African American

2,265 16.7% 11.7% 99

Asian or Pacific Islander

763 19.1% 3.95% 113

Some Other Race 1,480 20.5% 7.66% 121 Not White or Black

2,243 20.0% 11.6% 118

Figure 4: Shows that overall, whites and black/African Americans are slightly under indexing and other racial groups registering above index. Marital Status: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often: Cereal Bars Marital Status Total (000) Horizontal % Vertical % Index Married 10,426 18.8% 50.7% 105 Widowed 1,215 10.4% 5.91% 58 Divorced 2,871 16.6% 14.0% 92 Separated 557 16.4% 2.71% 91 Never Married 5,497 20.6% 26.0% 115 Figure 5: Indicates that those who consumer cereal bars most often are likely to be either married (index: 105) or never married (index: 115) Family Size: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often: Cereal Bars Family Size Total (000) Horizontal % Vertical % Index Any Kids 12,280 20.3% 59.7% 113 No Kids 7,885 15.7% 38.3% 87 Figure 6: Indicated that families with children consume cereal bars most often with a vertical percentage of 59.7% and index of 113. Female headed house: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often: Cereal Bars

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Parent Total (000) Horizontal % Vertical % Index Any Kids 6,294 20.8% 32.6% 123 No Kids 3,531 14.4% 18.3% 86 Figure 7: Shows that households headed by females with children are more likely to consume cereal bars most often. Relates back to figure 5 seeing that never married people registered an index of 115 Income: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often: Cereal Bars Income Total (000) Horizontal % Vertical % Index $35,000-49,999 1,927 11.9% 9.97% 71 $50,000-$74,999

3,644 17.9% 18.9% 106

$75,000-$99,999

3,568 25.8% 18.5% 153

$100,000-$149,000

2,358 17.4% 12.2% 103

Figure 8: Shows that overall, the consumers of cereal bars most often are earning between $50,000 to $99,999. Female 21-39 Income: Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often: Cereal Bars Income Total (000) Horizontal % Vertical % Index $35,000-49,999 88 2.30% 7.59% 54 $50,000-$74,999

981 4.81% 20.0% 112

$75,000-$99,999

1,077 7.78% 21.9% 182

$100,000-$149,000

660 4.86% 13.4% 113

Figure 9: Shows that looking deeper, that females aged 21 to 39 who eat nutritional snack bars, cereal bars, most often are earning over $50,000, with the main consumers falling between $50,000 and $99,999. Which is reflected in the overall population.

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Attitudes/Opinions on Diet & Health: Female aged 21-39 Statement Total (000) Horizontal % Vertical % Index I will pay anything when it comes to my health

1,288 17.3% 33.8% 94

I consider my diet to be very healthy

1,290 15.2% 33.4% 83

I think of the calories in what I eat

7,283 20.2% 34.6% 110

I make sure I exercise regularly

1,293 17.3% 34.7% 94

I don’t have time to prepare/eat healthy meals

1,191 18.7% 37.8% 102

I like to know about ingredients before I buy food

1,515 16.9% 41.5% 92

I’ll try any new diet 2,631 21.0% 12.5% 114 I work at eating a well balanced diet

1,953 18.7% 59.0% 102

I try to eat healthier food these days

13,614 18.2% 64.8% 99

I’m usually the first to try a new health food

4,142 23.9% 19.7% 130

Figure 10: Indicates females 21-39 like to try any new diet and will usually be the first to try new healthy foods. Attitudes/Opinions on Food: Female aged 21-39 Statement Total (000) Horizontal % Vertical % Index I try to include fiber in my diet

13,365 17.4% 63.6% 95

I often snack between between meals

15,443 21.1% 73.5% 115

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I normally count calories in the foods I eat

5,792 23.3% 27.6% 127

Natural value is most important in the foods I eat

9,244 17.3% 44.0% 94

I like to try out new food products

11,986 20.5% 57.0% 112

I eat several small meals during the day

9,158 21.1% 43.6% 115

Figure 11: Shows that females 21-39 are snacking between meals and will try new products (index: 112) while eating several small meals during the day (index: 115) Female 21-39 Nutritional Snack Granola, Fruit, etc.: Nutritional Snack Types Most Often Type Total (000) Horizontal % Vertical % Index Cereal Bars 4,906 25.4% 23.3% 138 Chewy Granola

5,864 28.5% 27.9% 155

Fruit 4,345 25.2% 20.7% 137 Granola 4,180 24.9% 19.9% 136 Other 840 16.2% 4.0% 88 Figure 12: Shows that in our target audience, females 21-39, are consuming chewy granola bars (index: 155) most often with cereal bars (our product) coming in second in consumption preferences most often (index: 138).

 

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M E D I A

Media Objectives o Create awareness within our target audience of women 21-39 o Goal to reach 400 Gross Rating Point`s in 90 days o Stay within the media budget, with using mediums of radio, TV, and

outdoor Key Terms

o Target Audience: those who we wish to advertise to; the group most likely to be influenced by the advertising messages.

o Index: A rational number telling of how likely people in a group are to behave, have attitudes of, or believe in a certain action (i.e. people 50+ Index=100, people 21-35 Index=200. Those 21-35 are twice as likely to fall into that group).

o Rating: the percentage of people watching a specific program at a specific time.

o Gross Rating Points (GRPs): The total amount of rating points that are purchased for advertising.

Target Audience (TA) Our media will be targeting women between the ages of 21 to 39, with an income of $50,000-$100,000, that live in the Spokane Designated Market Area. Size of Target Audience About 50.3% of the population of Spokane are women. The total amount of women is 101,362, with 36,150 women in our target age of 21-39 years old. Reach Needed Our goal is to acquire 400 Gross Rating Points within the first 90 days. To accomplish this, we will need to buy about 31 GRPs per week for the first 13 weeks of our advertising campaign.

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Media Consumption The top media channels consumed by our target audience are radio, television and outdoor. Radio: Women in our target audience tend to listen to the radio the most during late afternoon hours, between 3pm and 7pm. Also, of women in our target market, 34.2% listen to the radio during the weekends and late afternoons (Index=135).

(Simmons)

(Simmons) Television: Most women in our target audience have children, and as a result, 20.3% of those in our target audience have a 204 Index for watching Disney Channel.

(Simmons) Additionally, Simmons data show that those in our target audience have high viewership of MTV (19.7% of TA, Index=189), TLC (27.9%, Index=149), the Food Network (26.6% of TA, Index=128), ABC (20.1% of TA, Index=133), TBS

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(28.7% of TA, Index=124), Nickelodeon (16.0% of TA, Index=203) and Entertainment TV (20.1% of TA, Index=189). So, now that we knew what our target might be watching, we needed to learn when. The Simmons database showed that nearly a quarter of our target audience were 9% more likely than average to watch television between the hours of 10:00a.m. and 1:00p.m.

(Simmons) Outdoor Advertisements: In order to reach our target audience effectively while also staying within the parameters of the budget, we recommend the utilization of posters, a form of outdoor advertisement. Of those that pay a lot of attention to billboards, 22.2% fall in our target audience group, and index at a high 121. Posters:

(Simmons) Media Scheduling/Frequency Our media plan will focus on using a flighting schedule to reach our target audience. The information we gathered during primary research at Walmart and Dissmore’s shows that the highest amount of breakfast bars is sold at the beginning and the end of the school years. Therefore, we recommend spending the majority of the budget in the months of August through November as well as April through June.

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C o s t E f f i c i e n c y A n a l y s i s

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R e c o m m e n d e d B u y s

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M e d i a F l o w c h a r t

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C R E A T I V E

In order to spark awareness for Brightside Morning Snacks, we developed a campaign that focuses on the product’s unique features. When compared against the competition already in stores, Brightside Morning Snacks was superior to these competing products in the nutritional categories of protein and fiber. After some research into nutritional components and their effects on the body, we discovered that both protein and fiber lead to the sensation commonly referred to as “being full”. To express this advantage over our competitors, we chose to base our campaign around the slogan “Don’t let hunger hold you back!” This slogan emphasizes the products unique selling proposition of containing high protein and fiber allowing the consumer to stay full for longer. In addition, we found that our target audience lives a fast-paced and busy lifestyle. Therefore, we wanted to stress the product’s ability to let our consumers focus on the important things in there lives such as family and work, instead of constantly thinking of their next meal. We also added the phrase, “Be bold. Be brave. Be bright” to our campaign. This phrase embodies the end goal of anyone who eats Brightside Morning Snacks, which is the ability to achieve what you want to achieve with out hunger getting in the way.

C r e a t i v e B r i e f

What are we selling? Why are we here? Brightside Morning Snacks are a breakfast snack that satisfies hunger with out sacrificing essential nutrients. The soft baked granola and 16 grams of whole grain per serving make this product an excellent option for fiber. A variety of flavors allow the consumers to pick between multiple sweet and delicious options. In addition to the benefits of the snack itself, it also comes in a tray allowing your snack to be mess free.

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Who are we talking to? Our target audience for our campaign is females 21-39. These women are mothers who are in need of convenient snacks to get their children through the difficult hours between meals. Whether handling a chaotic morning before dropping the kids of at school, or simply satisfying hunger while at the office, Brightside Morning Snacks will be able to accommodate all snacking needs. As a demographic that is concerned with their health and including fiber in their diet, reaching for Brightside Morning Snacks is not only a viable option, but the best option for them. Why? What is the most significant change we can create, as an objective? OR What obstacle are we trying to over come? The overall perception of snack bars is that while they are tasty and convenient, they are not filling. Because Brightside Morning Snacks are high in protein and complex carbohydrates, these snacks are made to keep their consumers full for longer in between meals without sacrificing taste and convenience. How? What can propel this change as a strategy? What are we trying to say? What is the most important thing we need to say? With our consumers eating Brightside Morning Snacks between meals, not only is their hunger being diminished, but they are saving time and effort at the same time. This extra time and effort can be used for more important things such as spending time with family, working hard for a promotion, or some much deserved “me” time. What makes this believable? What are the key insights? Healthy foods are constantly becoming more prevalent in peoples lives. With the media constantly reminding the general public of the consequences of unhealthy behavior, eating quality foods is a trend that is here to stay. For a target audience that is constantly competing in the working world to better themselves while juggling starting a family and the struggles that come with it, there is never enough time in the day. Anything that makes the day a little bit easier is welcomed greatly.

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What do we need to keep in mind? What are mandatories? We need to emphasize that the optimistic qualities of the product. By eating Brightside Morning Snacks you’ll start your morning with a smile on your face and keep it. Campaign Proposition Brightside Morning Snacks keep you full without sacrificing taste or convenience.

G a p M a p s

Calories vs. Protein Positioning

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Fiber vs. Protein Positioning

Number of Flavors vs. Mess-Free

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P o s t e r B i l l b o a r d s

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Radio Spot #1 *Printed separately

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Radio Spot #2 *Printed separately

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TV Spot #1

*Printed separately

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TV Spot #2 *Printed separately

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TV Spot #3 *Printed separately

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S a l e s P R O M O T I O N

Objectives 1. Generate product trial 2. Increase product/brand awareness 3. Encourage repeat purchase

Tactics

1. Trade Coupons: On-Pack 2. Trade Coupons: In-Pack 3. Sampling

T r a d e C o u p o n s

Trade coupons are effective when helping increase short-term sales and typically have a higher usage rate when compared to manufacturer coupons. Using trade coupons will help us generate product trial, which will help us achieve objective 1. Trade coupons can also increase sales after the promotion ends (“slippage”). We considered putting coupons in newspapers, but research shows that in-pack and on-pack coupons have a 6 to 10 times higher redemption rate. Trade coupons will also help us reach Objective 3 because they are able to convert triers to regular users and can reach a large number of prospects quickly.

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O n - P a c k C o u p o n s

To reach objective 1 and increase trial, we recommend using on-pack coupons at the very start of the campaign. Starting August 1st, 2015, boxes should include $1.00-off on-pack coupons. This will coincide with a heavy-up time on our pulsing media schedule that extends from August 2016 to October 2016. Since this is a new product, we need our price-off to be on the high-end at $1.00 in order to be perceived as a true value to customers, especially since we have a smaller market share. We will put an on-pack coupon on every box put out during the first 3 months, so an estimated 13,632 coupons total. These coupons will be valid from August 1, 2016 to November 30, 2016. Having a short, four-month expiration date can create a sense of urgency and aid in generating trial. We believe having in-store coupons will increase sales greatly, considering 70-80% of decisions are made in the store.

I n - P a c k C o u p o n s

We recommend using in-pack coupons as a tactic to reach Objective 3 of encouraging repeat purchase. We will push out these couponed packages during the final 3 months of our campaign to encourage those who participated in trial to keep on buying Brightside after the campaign ends. The in-pack coupon should look the same as the on-pack coupon, but is valid from May 1, 2017 to September 30, 2017.

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S a m p l i n g

We recommend sampling out Brightside Morning Snacks through in-store demonstrations at specific stores in our test market in order to reach Objective 2 of creating brand awareness, as well as generating product trial. Sampling is sometimes the only way to convert people, and with such a saturated market, it may be the best way to cut through the clutter. Furthermore, with sampling we can be selective and generate quick reactions from our target. Since demos can be expensive, we recommend being very strategic about the day and time of the sampling. Since our campaign is capitalizing on parents getting children ready for back-to-school time, demos should take place the weekend before school starts. This will make parents aware of the brand during a time when they are searching for the next great snack to satisfy their kids. The first day of school for the Spokane School District in 2016 is September 5th. Therefore, our demo should be scheduled for the Saturday leading up to the school start date. We advise that a sampling demonstration be held in 26 stores in the Spokane DMA on September 3rd. Some stores do not allow for in-store sampling, which is why we will not be able to demo in all 71 stores in our test market. Rosauers, Yokes and Walmart said they do in-store demonstrations, so we will sample in those specific 26 stores. Sampling is the most direct way to get consumers to try the product and see for themselves what Brightside Morning Snacks have to offer. We believe this Saturday event leading up to the first day of school will be an effective strategy in reaching Objectives 1 and 2 and will allow us to reach many mothers in our selected target audience. The majority of our money for sales promotion ought to be spent here because it is of the utmost importance that we get our target to try the product—sampling can guarantee this goal.

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P R O M O T I O N A L B U D G E T

On-Pack Coupons We recommend distributing 13,632 coupons offering $1 off the purchase of Brightside Morning Snacks. Distributing 13,632 coupons with a 3.4% response rate gives us 463.488 coupons redeemed. Reimbursement to store 463.488 x $1.00 = $463.49 Retailer handling fee 463.488 x $0.08 = $37.08 Clearing house fee 463.488 x $0.04 = $18.54 Total $519.11 Sampling We recommend sampling in 26 stores, including Wal-Mart, Rosauers & Yokes. Store fee $150 Stores 26 Days 1 Total $3,900 In-Pack Coupons We recommend distributing 13,632 coupons offering $1 off the purchase of Brightside Morning Snacks. Distributing 13,632 coupons with a 3.4% response rate gives us 463.488 coupons redeemed. Reimbursement to store 463.488 x $1.00 = $463.49 Retailer handling fee 463.488 x $0.08 = $37.08 Clearing house fee 463.488 x $0.04 = $18.54 Total $519.11

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Promotion Budget On-pack coupons $519.10 Sampling $3,900 In-pack coupons $519.10 TOTAL $4,938.20 In-Pack/On-Pack Coupons

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B U D G E T

Total  Budget  

Item   Cost  Total  Budget  for  Product   $152,036.56    Advertising  Budget  (60%  of  total  cost)   $91,221.94    Estimated  Slotting  Fees  (for  3  Flavors  for  71  Stores)   $36,210    Remaining  budget  (Sampling,  Promotions,  etc.  after  Slotting  Fees   $55,011.94    

 Sales  Promotions  

Item   Cost/Amount  On-­‐Pack  Coupons  

Reimbursement  to  Store   $463.49  Retailer  Handling  Fee   $37.08  Production  Cost   $0.00  Clearing  House  Fee   $18.54  Total   $519.11  

 In-­‐Store  Sampling  

Store  Fees   $150.00  Stores   26.00  Days   1  Total   $3,900.00  

 

Itemized  Budget  Media  Costs  

Media   Individual  Cost   Units   Weekly  Cost   Campaign  Cost  Television                  NICK-­‐TV  Sa-­‐Su  9am-­‐7pm   $25.00   50   $1,250.00   $8,750.00  KREM  2  News  @  5PM-­‐Sat   $105.00   10   $1,050.00   $10,500.00  Radio                  KXLY  FM   $50.00   15   $750.00   $8,250.00  KZZU  FM   $50.00   10   $500.00   $2,500.00  KEZE  FM   $25.00   10   $250.00   $4,750.00  

Outdoor                  10  Posters     $7,500.00   1   $7,500.00   $15,000.00  Totals           $11,300.00   $49,750.00  

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 In-­‐Pack  Coupons  

Reimbursement  to  Store   $463.49  Retailer  Handling  Fee   $37.08  Production  Cost   $0.00  Clearing  House  Fee   $18.54  Total   $519.11  Sales  Promotion  Total   4,938.22  

 Total  Costs  

Remaining  Budget   $55,011.44  Total  Media  Cost   $49,750.00  Total  Promotion  Cost   $4,838.12  Total  Cost   $54,588.12  Remaining  Budget   $423.32  

   

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B I B L I O G R A P H Y

Boothroyd, A. (2014, November 17). Top ten food trends for 2015, Innova Market Insights. Retrieved October 4, 2015, from http://www.foodmag.com/au/News/Top-ten-food-trends-for-2015-Innova- Market-Insight “Cereal Bars and Snack Bars.” Cereal Bars and Snack Bars - US - March 2013. Mintel Group Ltd., Mar. 2013. Web. 25 Oct. 2015. “Executive Summary.” Healthy Snacking - US - July 2012. Mintel Group Ltd., July 2012. Web. 25 Oct. 2015. Experian Simmons Market Research Bureau. NCS/NHCS: Fall 2009 Adult Full Year (Nov 08 - Dec 09) “Innovations and Innovators.” Food Packaging and Trends - US - July 2014. Mintel Group Ltd., July 2014. Web. 25 Oct. 2015. Fiber One. Fiber One Cereal Challenge. Web. http://www.fiberone.com/cereal- challenge Kellogg’s. Kellogg’s Special K Personal Fitness Program With DailyBurn. Web. http://www.kelloggs.com/en_US/sk-daily-burn-fitness-program- promotion.html “Local Market Audience Analyst.” Kantar Media SRDS. N.p., 2014. Web. 25 Oct. 2015. http://next.srds.com/media-data/consumer-demographics Nature Valley. Coupons. Web. http://www.naturevalley.com/nature-valley- coupons/

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SIC Code 2065 Candy and other Confectionery Products. (2015). Retrieved October 25, 2015, from http://siccode.com/en/siccodes/2065/candy-and- other-confectionery-products Spokane, Washington DMA Handout Spokane, Washington Lifestyle Hand Out U.S. Nutritional and Cereal Bar Trends. (2015, March 10). Retrieved October, 2015, from http://www.preparedfoods.com/articles/115127-us-nutritional- and-cereal-bar-trends (2002). 2002 Honey Nut Cheerios Milk n’ Cereal B [Online video]. General Mills. Retrieved from https://www.youtube.com/watch?v=2Gahs0Po3q4